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Consider a two-person property trading system (x1, x2).(x1, xA) and (x, x) Consumers in this economic system. The consumption combination of A and B ;
Consider a two-person property trading system (x1, x2).(x1, xA) and (x, x) Consumers in this economic system. The consumption combination of A and B ; the number of xy and x2 in this economic system is fixed to xi and X, respectively, the utility function of consumers A and B , x4 + ln (A) and x + In (x). (1)Try to use Edgeworth Box to solve the resource allocation that satisfies Pareto Efficiency in this economic system? (2)If one person in the system owns all xl wealth, and the other person owns all x2 wealth, ask whether this resource allocation will satisfy Paeto Efficiency, why? Consider a two-person property trading system (x1, x2).(x1, xA) and (x, x) Consumers in this economic system. The consumption combination of A and B ; the number of xy and x2 in this economic system is fixed to xi and X, respectively, the utility function of consumers A and B , x4 + ln (A) and x + In (x). (1)Try to use Edgeworth Box to solve the resource allocation that satisfies Pareto Efficiency in this economic system? (2)If one person in the system owns all xl wealth, and the other person owns all x2 wealth, ask whether this resource allocation will satisfy Paeto Efficiency, why
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